Members of Croatian Parliament discuss three sectoral Acts

Today the Croatian Parliament discusses three new acts concerning physical planning, construction and energy efficiency in Building Construction. The Acts are presented by Deputy Prime Minister and Minister of Physical Planning, Construction and State Assets Branko Bačić.

The three new acts in question have been developed by the Ministry of Physical Planning, Construction and State Assets:

• Physical Planning Act

• Building Act

• Act on Energy Efficiency in Building Construction

“This legislative package represents a reform package in accordance with the Government’s programme establishing a modern, completely digitised and sustainable system for managing physical planning and construction focused on space preservation, affordable housing and Croatia’s energy self-sufficiency,” Minister Bačić said in his introductory presentation.

Preserving space as a key national asset

Space, together with people, is the most valuable asset of the Republic of Croatia.

The new Physical Planning Act is based on the principles of responsible, balanced and sustainable space use, and it introduces a series of important novelties:

• restoration of the strategic component of spatial plans at the state and county levels,

• control of the expansion of building areas with mandatory analysis of infrastructural possibilities and justification for expansion,

• introduction of urban land consolidation as a new tool for rational land use and resolution of property and legal matters,

• mandatory planning of affordable housing in every spatial plan,

• complete digitisation of spatial planning - all plans are to be developed in the ePlans system, which introduces a standardised, transparent and efficient planning method at the state level.

“The new Physical Planning Act introduces system modernisation and planning digitisation, so every plan will be developed according to the same standard and it will be publicly available. The strategic component of spatial plans at the state and county levels is restored in order to direct the development, instead of allowing unchecked expansion,” Minister Bačić said. He recalled the current Physical Planning Act was adopted in 2013 during SDP’s term, adding that the proposed act restores the strategic component of spatial plans at the state and county levels and introduces complete digitisation of physical planning.

Urban land consolidation is introduced as an instrument to implement spatial plans more efficiently with the aim of using and developing building land rationally and controlling the expansion of building areas. The act also introduces the urban project, which will implement spatial plans faster, and the infrastructural project for transport, energy, water and other constructions of state significance.

Straightforward mechanisms of space protection are enabled, namely with regard to the coastal area and maritime domain.

The act also regulates land for the construction of buildings for affordable housing, which creates a legislative framework that will ensure a more efficient application and implementation of the National Housing Policy Plan until 2030 and the Action Plan until 2027.

Deputy Prime Minister and Minister of Physical Planning, Construction and State Assets Branko Bačić said on Wednesday that housing units for affordable housing cannot be built without a representative body and that the proposed acts do not override local self-government units.

“There is no urban project without local self-government. (…) There is no affordable housing without spatial-planning documentation, no affordable housing without a representative body, without a local housing programme. (…) We are not overriding local self-government units, we’re not. Somebody prove me wrong and I’ll withdraw the act,” Minister Bačić said.

Moreover, the act introduces an almost complete ban on condominium conversion of tourism construction works in order to prevent manipulation in terms of space purpose and coast apartmentification, while limiting uncontrolled positioning of mobile homes and glamping villages within and outside building areas. Condominium conversion in the zones of hospitality and tourism purposes is not allowed, except in the zones of high ratings (five stars) where at least 70% of accommodation capacity refers to hotels. In such zones it will be possible to convert villas and apartments, but only after having obtained use permits for the hotel and central amenities.

The entire zone needs to be a single functional unit with a centralised model of management, maintenance and rentals. Villas and apartments will only be available for sale to a purchaser who entrusts the management to the common manager for the purpose of performing hospitality and tourism activities.

The act also introduces new standards for developing campsites in restricted areas. They must be positioned at least 100 metres of the coastline in designated construction areas outside settlements and 25 metres within settlements. At least 40% of the area must include a park or natural greenery; traffic and parking areas can occupy no more than 30% of the total area, and campsite development cannot exceed 30% of its area, including all buildings and movable structures.

According to the proposed act, recreational vehicles, Bačić said, are defined as “modular prefabricated mobile homes” whose installation does not require a building permit or a main project, but it requires a location permit.

“We have left the option for the mobile home to be placed at the location designated by the location permit to avoid overbuilding and excessive concreting of this beautiful area, because we are talking about protected coastal zones,” Bačić pointed out.

A transitional provision allows for a ten-year period for existing campsites, but they are required to improve the space, which will be further defined by the Ministry’s Ordinance.

Digitised and simplified construction

The new Building Act introduces completely digital and simplified procedure management - from designing to building use.

The main novelties include:

• ePermit system which allows designers to independently, electronically, obtain all the required special requirements and connection requirements,

• simplified procedures for smaller and multiapartment buildings, with less documentation, shorter deadlines and lower expenses,

• introduction of the BIM model (Building Information Modeling), which connects designers, investors and contractors into a common digital 3D model,

• stronger control of legality and more efficient prevention of illegal construction.

These measures generate faster, more transparent and more predictable procedures, which directly contributes to reducing costs and increasing the availability of affordable housing.

The aim of the new Building Act is to enhance efficiency and transparency of the construction system.

The most important novelty is the fact that the ePermit system will allow the designer to, for the first time, independently and electronically obtain all the necessary requirements and connections in order to obtain a building permit without obstacles, especially for less complex buildings, family houses based on the concept design, which will significantly accelerate the procedure of obtaining building permits.

“We are reducing documentation requirements, which is also important for multiapartment buildings, as these are precisely the places in urban environments where we strive to ensure affordable housing. We are one of the first countries in Europe to introduce the BIM model, which connects designers, investors and contractors into a common digital 3D model, which increases absolute accuracy and construction efficiency,” the Minister said.

The proposal of the new act is oriented towards supressing illegal construction as much as possible, hence the first-instance authority is obliged to, before issuing a building permit, inspect the building plot on-site or otherwise determine whether the investor has already started construction. If so, the investor will be required to pay a special fee. Furthermore, for the first time this act prescribes the obligation to develop a Building Maintenance Plan, which is extremely important and significant for future building maintenance. The contractor, i.e. the main contractor, is obliged to accompany the use permit request with the maintenance plan, which entails the requirements and methods of maintenance of the building and the installed equipment, and the owners are obliged to adhere to the plan and ensure building maintenance during its life cycle. This introduces a systematic maintenance care and prolongs the life cycle of buildings, which is an important step forward towards responsible management of built environment.

Energy efficiency and self-sufficiency of Croatia

The Act on Energy Efficiency in Building Construction is key for accomplishing energy independence and economy resilience.

It transposes the revised Energy Performance of Buildings Directive (EPBD) into the Croatian legal system, and the act establishes the prerequisites for:

• reducing energy costs for citizens and the public sector,

• reducing energy poverty by encouraging reconstruction and investment in sustainable buildings,

• developing the National Building Renovation Plan and increasing investment in renewable energy,

• green job creation in the sector of construction and energy.

The act is an important step forward towards the goal that Croatia becomes an energy self-sufficient state which uses its resources rationally and builds a sustainable future.

Reform breakthrough for a sustainable and digital Croatia

The three acts form a single, digitally connected and reform-aligned system which:

• preserves space as the most valuable national asset,

• digitises all physical planning and construction processes,

• simplifies procedures and encourages affordable housing,

• builds a resilient and self-sufficient Croatia through energy efficiency.

“These three acts establish a single and digitally connected system which preserves space as the most valuable national asset, simplifies procedures and encourages construction, namely of affordable housing. It is a reform breakthrough which intertwines space, construction and energy - the three pillars of sustainable development and better lives of citizens,” Minister Bačić concluded.

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